Monday, November 10, 2008

Naked Put Calculator


Naked Put Calculator

It's a risky bet. Sell a put option, then agree to buy the stock if the price drops below the strike price of the option. If the strike price is 9 and the stock drops to zero, you still pay 9 dollars. If the stock stays above the strike price of 9, you keep the price of the option as pure profit.

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